Ford reports first-quarter earnings

Ford reported first-quarter earnings on Tuesday. They were a slight miss, at $0.23 per share. Revenue for the quarter was $33.9 billion.

Analysts expected the automaker to earn $0.26 per share.

According to Ford CFO Bob Shanks, the miss was almost entirely due to differences in tax rates. Lower revenue in the quarter versus the same period last year, when Ford brought in $35.9 billion, was the result of foreign-exchange issues.

The North American market and Ford's credit operations were highlights from the quarter. The company pointed to operating margins for the full year of 8.5-9.5%, raising its guidance from last year.

"We believe the first quarter will be the low point for Ford's earnings in 2015," said Sterne Agee analyst Michael Ward. "The launch of the new F150 [pickup truck] has been on or ahead of schedule and industry demand trends as well as pricing have been better-than-expected which should provide an added boost as the plants reach full production rates."

The rollout of the revamped F-150 has been a source of ongoing concern for investors. It's the best-selling vehicle in the US, but Ford has committed to building it with more lightweight aluminum to be able to meet future government mileage standards.

"The overall contribution from the F-150 in North American is going to be stronger than what we though," Shanks said.

"We're not going to miss a beat," he said of the transition to the new truck from the previous generation.

The new F-150.
Alex Davies / Business Insider

In China, Ford has been rapidly catching up with rival carmakers. The company is opening two new assembly plants this year and has engaged with a new strategy to bolster its resurgent Lincoln luxury brand in the country. Lincoln currently has 11 Chinese dealers, but that number will improve to 60 by the end of next year.

However, China isn't without its challenges.

"We expect a good performance by the third quarter," Shanks said. "But we're perceiving slower growth there overall."

Ford stock was trading down very slightly before the markets opened on Tuesday, after closing at $16 per share on Monday.